R2010-108 ACCEPTING PROPOSAL AND AUTHORIZING CONTRACT

Home Browse Search

MANAGEMENT SERVICES DEPARTMENT MIS DIVISION Memorandum No. 2010-23 May 3, 2010 MEMO TO: Honorable Mayor McElroy and City Council FROM: Ryan P. McCrady, City Manager� � Gerard J. Bauer, Assistant City Manager�' Randy G. Aldrich, Manager, MIS Division'=��4.--- SUBJECT: City's AT&T Centrex Contract Upgrade SUMMARY RECOMMENDATION: Staff recommends that Council approve the resolution at Enclosure 1, authorizing the Mayor to accept the proposal of AT&T and execute the contract and or agreement shown at Enclosures 2 through 3 for upgrading the Centrex Contract. BACKGROUND: This recommendation is the result of reviewing the City's phone contracts, with a view to streamlining, consolidation, and cost reduction. The City's AT&T Centrex, central exchange, contract has been in force since December 1995 and needs to be updated to reflect the current and future Centrex requirements for the City. Centrex is a central office network-based telecommunications service for voice and data. It offers traditional telephone system features and functions found in premises-based systems such as PBX, Private Branch Exchange. Centrex provides PBX services for Police, Water Production, Fire, Mass Transit, and Municipal Services Center locations without incurring the high cost of onsite PBX equipment. AT&T has proposed a 36 month agreement with a minimum of 50 lines for a total monthly cost of$1,740.77 for the 117 lines we currently have. This new proposal will reduce our current Centrex cost by $1,500 per month with an annual estimated savings of $18,000. Staff recommends accepting the AT&T proposal and executing the contracts for 36 months. POTENTIAL OBJECTION: None anticipated. INPUT FROM OTHER SOURCES: None. STAFF REFERENCE: Randy G. Aldrich, MIS Manager, 450-2239. BUDGET/TIME IMPLICATIONS: Expected budget savings of $18,000 per year prorated by departments affected. Attachments (3) 1